What's better than not having to pay for something, but still enjoying its benefits? With prices always increasing, customers are thrilled to receive free items, but how does this concept work for those offering the freebies?
Companies are capitalising on the power of freebies to reach consumers. The 'try before you buy' approach is much more powerful than traditional advertising.
Allowing consumers to try products is a more lucrative option than asking them to consider buying something they've never used. From free samples to free trials and ‘buy one, get something else for free', companies are dramatically increasing profits. But can you ever really get something for nothing?
A free sample or free trial period can make your product or service reach more potential customers.
If something's free, the value of the product is often magnified in the customer's mind. Feelings of loyalty to the company can also be formed. If someone is being given something free, their affinity to the company grows, leading them to purchase more products.
Companies capitalise on the 'buy one, get one free' approach on a daily basis. Shoppers will often buy a product they wouldn't usually purchase, just because they'll get an extra one. Expensive products that people wouldn't normally consider suddenly become a 'must have’.
Corporate gifts are often used too. These are beneficial to both the companies offering them and to employers. From free tickets to the game to backpacks and even pens, the offering of these items for no cost has an enormous effect on employees.
If employees feel valued, they're more likely to contribute more to their employer. There's no better way to show them how important they are than by offering them something for their work.
Freebies also provide the employee with an incentive to meet targets. If they are being given free items, they may feel encouraged to work extra hours or take on higher workloads. Offering a corporate gift can highlight the good work of employees and make them feel valued
The reverse psychology approach has a significant influence on consumers. People often feel obliged to buy a company’s product after receiving a freebie, which is how companies can make a lot of money. Friendly and helpful employees can add to this sense of obligation.
There are some negatives for companies, however, and they have to find a balance in their approach. Consumers are much less likely to be drawn to offers if they have to spend time in acquiring them. Even asking people to fill out a survey can lead the customer to wonder if the products are worth their time. Adding to this, if the product isn’t right, customers will throw it away.
According to a research article in the Journal of Marketing Research, consumers were 20% more likely to talk about something they received for free. That buzz generates more interest for the company and gives others a positive image of the company before they know anything about them.
There's no doubt that the psychology of free gifts is a powerful tool for companies. There are times when customers gain a lot from receiving a free item. The gifts can provide them with a reminder of a strong relationship they have with an existing supplier, or act as a talking point for building up a new relationship.
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